Wholesale prices for construction products–particularly wood–have risen several times faster than for wholesale goods overall, today’s Producer Price Index report shows.
The Bureau of Labor Statistics’ (BLS) monthly report found softwood plywood prices were 26.9% higher in February than in the same month in 2017 and had risen 5.3% just since January. Meanwhile, wholesale prices for wood trusses rose 17.3% and 4.6%, respectively, while laminated veneer lumber prices rose 4.8% for the year and 0.1% over the month. Millwork products rose 4.4% for the year and 1.2% for the month. (See tables, starting on page 19.)
In contrast, producer prices overall excluding the volatile food, energy, and trade sectors have risen 2.7% over the past year. The producer price index generally focuses on costs of raw or semi-processed materials as well as the machines used to create products. What retail customers pay is covered in a separate consumer price index report.
Today’s report on wholesale prices generally backs up Random Lengths’ latest weekly report on spot prices. The service’s composite index for structural panels (including plywood) was 33.9% higher as of March 9 than it was a year earlier, while the framing lumber index was 27.1% higher.
Not all wholesale wood prices shot up. The index for stock wood kitchen cabinets, related cabinetwork, and countertops has gone down 0.1% since February 2017 but did rose 0.7% in February from January. And the index for wood window units was up just 2.0% for the year and was unchanged from January.
Outside of wood, the index for steel mill products rose 4.8% year-over-year and 2.3% over the month, while builders hardware increased 1.9% and 0.5%, respectively. Rebar has gone up only 0.4% for the year but climbed 1.4% in one month. Asphalt and tar roofing and siding products cost 0.2% more since February 2017 but were 4.9% cheaper than in January. Meanwhile, gypsum products cost 8.0% more than a year earlier and 7.2% more than a month prior.
